Applied Materials - AI Stock Analysis

Analysis generated January 27, 2026

Applied Materials, Inc. (NASDAQ: AMAT), founded in 1967, is a global leader in providing materials engineering solutions used to produce virtually every new chip and advanced display in the world. The company offers manufacturing equipment, services and software to the semiconductor, display, and related industries, enabling advances in devices such as smartphones, TVs, and solar panels. With a robust global footprint, Applied Materials strategically positions itself at the forefront of technological advancements in materials engineering and has a solid reputation for innovation.

Fundamental Analysis

Revenue: Applied Materials reported revenue of $6.8 billion for the last quarter, which represents a decrease of 6.87% compared to the preceding quarter. When compared to the same quarter last year, there is a 3.48% decrease. This downward trend in revenue could be a concern as it indicates potential issues in sales growth or market competition.

Net Income: The net income for the last quarter stood at $1.9 billion. This figure shows a 6.63% increase from the preceding quarter and a 9.59% increase compared to the same quarter last year. This is a positive sign, indicating operational efficiency and strong profit margins.

EBITDA: EBITDA came in at $2.45 billion for the last quarter, marking a slight increase of 1.12% from the previous quarter. Significantly, there is an 18.20% increase when compared to the same quarter last year, reflecting strong operating performance and cost management.

PE Ratio: The current Price-to-Earnings (P/E) ratio is 37.18. This is relatively high and could imply that the stock is overvalued, which can be a bearish outlook for some investors.

Insider Selling: Recent insider selling is a potentially bearish signal. Insiders have better insights into the company’s future, and selling their holdings might indicate expectations of a downward trend.

Technical Analysis

Stock Price: The current stock price is $332.62, which is an increase of 27.00% compared to a month ago. Compared to a year ago, there is a significant increase of 94.39%, indicating strong investor confidence and a bullish long-term trend.

SMA10: The current 10-day Simple Moving Average (SMA10) is 323.55, up from the previous SMA10 of 322.99. An increasing SMA10 suggests an upward trend in the stock’s price movement.

RSI: The Relative Strength Index (RSI) is at 72.3, indicating an overbought condition. This may suggest that the stock is overvalued in the short term and could face selling pressure.

Alternative Data Analysis

Job Postings and Employee Sentiment: Applied Materials has 314 open positions according to popular job boards, down by 7% in the last couple of months. This decline could indicate cost-cutting measures or margin improvement strategies, which are typically not positive signs for growth.

Employee sentiment is neutral, suggesting neither an overly positive nor negative outlook from within the company.

Customer Acquisition: The company's website traffic has increased by 5% in recent months, reaching approximately 330,000 visitors. This bullish trend could indicate growing interest and potentially increased customer acquisition.

Customer Engagement: Applied Materials' Twitter account has 16,000 followers with no significant change in recent months. This neutrality in customer engagement may not be a strong indicator of growing or declining interest.

AI Score: According to AltIndex's AI scoring, which combines fundamental, technical, and alternative data analysis, Applied Materials has a score of 43, suggesting a hold signal.

Conclusion and Recommendation

Applied Materials presents a mixed picture with strong profitability (evidenced by a significant increase in net income and EBITDA) but declining revenue. The technical indicators suggest an upward trend, though the RSI highlights a potentially overbought condition. The alternative data signals are somewhat mixed, with a reduction in job postings indicating cost-cutting measures, but growing web traffic suggesting increased customer interest. Given these factors, a cautious approach involving a hold recommendation might be prudent for potential investors. This allows for waiting on further data to either confirm upward momentum or indicate any forthcoming downturns.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.